The government has announced that Rannerdale Veterans' Home in Christchurch will receive a one-off grant of $250,000 (GST exclusive) to assist in upgrading facilities for its 65 residents. This approximates to a $1 government subsidy for every $3 raised locally.

Veterans' Affairs Minister Mark Burton said that the needs of veterans are being recognised by the Labour Alliance Coalition Government.

"Recent announcements have included: Improved access to health treatment for Vietnam veterans and their families; establishing a case management service in the Office of Veterans' Affairs; ex gratia payments of $30,000 each to internees held by Japan; and the drafting of new legislation to allow veterans to work part-time and still receive benefits.

"This particular decision recognises the huge fundraising effort of Christchurch people in support of the Rannerdale Veterans' Home," said Mark Burton.

Deputy Prime Minister and Wigram MP Jim Anderton has strongly supported the Rannerdale case, "We have 65 residents who fought for this country in World War Two and later wars who deserve better facilities. This Government is recognising this. Rannerdale has had no Government funding at all up until today and has now raised $560,000 of the $1 million they need to upgrade and is committed to raising $750,000. This $250,000 from Labour Alliance Government will make a significant contribution."

John Masters, the Chair of the Rannerdale Charitable Trust says he is, "absolutely delighted" with the Government decision. He says this will allow the upgrading of beds and facilities from 1950s equipment to provide better care and support.

The average age of Rannerdale residents is around 80 years and there is only one woman resident.